Contractor came out today. First thing he said is he can offer me a $500.00 refund for the trouble. This is after he told me he has never experienced this before and knows nothing about it. I told him this is not what I paid for and if it's a product issue, he didn't get what he paid for either. I told him I don't care who's fault it is but this needs to be made right for me. He's going to talk to his concrete vendor and get back to me early in the week. We went around the garage and lightly tapped on the blisters with a hammer and they break open with little effort. This is not going to be fun.
It'll be interesting to hear what his concrete supplier has to say but I doubt it will be helpful. This is not a material problem - it is an installation problem. The only material related issue I can think of is if the concrete was air entrained. Air entrained concrete should generally not be used for interior, steel troweled floor slabs because it can lead to de-lamination and blisters.
Might be a good idea to call the supplier yourself and ask what the mix was. While you've got them, it might also want to ask if they have been paid. If a conflict develops, you'll want to know their payment status. Not sure if you still owe the contractor any money but you'll need to make sure they were paid or you could add insult to injury with a lien on your property.
Blisters
can be a little complicated. There are a myriad of variables related to mix design, weather, sub grade and finishing procedures that cause them and occasionally even good finishers get them. At the end of the day however, the finisher is responsible. If I got a call that a slab we placed had blistered, I'd send the saw cutting crew down the next day.
Sorry to be so negative but I want you to have all the information possible. Feel free to Pm me if you'd like to talk any of this though.